E17.1 Define terms used in CVP analysis. LO1, 2, 4 Complete the following statements with one of the terms listed below (some terms may not be used):

Margin of safety Total fixed costs Mixed cost Unit variable cost Contribution margin Total variable cost Absorption costing Variable cost Break-even point

(a) ______________ remain unchanged when activity level changes within the relevant range.

(b) The excess of selling price over variable costs is called the ______________.

(c) Fixed manufacturing overhead is included in product costs under ______________.

(d) An activity level where total revenues equal total costs is termed ______________.

(e) Direct labour is an example of a ______________.

(f) ______________ measures the excess of sales over break-even sales volume.